The geography of worker-firm sorting : drivers of rising colocation / Nils Torben Hollandt, Steffen Müller ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Discovery
1945989920
URN
urn:nbn:de:gbv:3:2-123456789-1176742
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, 2025
Umfang
1 Online-Ressource (III, 54 Seiten, 1,5 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Literaturverzeichnis: Seite 30-31
Inhaltliche Zusammenfassung
Spatial segregation of low- and high-wage workers is a persistent economic issue with broad social implications. Using social security data and an AKM wage decomposition, this paper examines spatial wage inequality in West Germany. Spatial inequality in log wages rose sharply between 1998 and 2008, mainly due to increased variance in worker pay premiums across regions (48%) and stronger positive spatial assortative matching of workers and establishments (40%), i.e. colocation. Changes in establishment wage premia are mostly unrelated to rising colocation whereas labor mobility even reduced it. Instead, growth in worker pay premiums among stayers was concentrated in regions where high-wage workers and high-wage establishments were overrepresented already in the 1990s and, thus, magnified pre-existing colocation leading to ‘colocation without relocation’. Germany’s rising trade surplus, especially with Eastern Europe, boosted stayers’ worker pay premiums in those ex-ante high-wage regions and fully explains rising colocation.
Schriftenreihe
IWH discussion papers ; 2025, no. 22 (December 2025) ppn:837399270